On February 16, the market for induction furnace (IF) steel in India saw widespread pricing adjustments due to a lack of demand. Prices for sponge iron experienced daily declines in a range of ₹50 - 250/tonne, with the largest drop of ₹250 /tonne at Ramgarh ₹25,750/tonne. Prices for billets fell by ₹100 - 400 /tonne throughout the major centres of Mandi and Raipur, which posted a ₹400/tonne decline to ₹44,500/tonne and ₹41,300/tonne, respectively. Rebar prices (Fe 500) went down between ₹100 - 500/tonne, with Jalna and Hyderabad experiencing the largest decrease of ₹500/tonne to ₹48,800/tonne and ₹48,500/tonne, respectively.  The drop in prices was linked to reduced trading activity and uncertainty about future demand, which discouraged buyers from making large purchases at current prices.

Outlook:

The market is anticipated to remain subdued in the near term. Continued weakness in demand sentiment and new bookings, as well as a cautious approach to managing inventories, will place downward pressure on prices. Unless there is an increase in construction activity or restocking demand, both the raw materials and finished steel sectors may have relatively low trading volumes and see a continued lack of pricing power. Mills are likely to continue watching spreads closely and will make production and/or pricing adjustments based on maintaining margins in this current depressed environment.